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July 14, 2020  

COVID-19 Federal Guidelines for Reopening Tasting Rooms (Part 3)

by Molly Kelly, Enology Extension Educator

In blog post #1 (June 29th) Penn State Extension covered current COVID-19 state guidelines for the reopening of Pennsylvania tasting rooms. In the second post (July 13th) we covered federal guidelines of general best practices related to the reopening of tasting rooms and COVID-19 drawn from guidance by the Centers for Disease Control (CDC), US Department of Labor, American Industrial Hygiene Association (AIHA), Occupational Safety and Health Administration (OSHA) and the Food and Drug Administration (FDA).

These agencies offer considerations for ways in which operators can protect employees, customers, and communities and slow the spread of COVID-19. These considerations are meant to supplement—not replace—any state, local, territorial, or tribal health and safety laws, rules, and regulations with which businesses must comply.

In this third and final post we will discuss additional federal guidelines to more safely open tasting rooms.

Ventilation

  • Make sure ventilation systems are operating properly and increase circulation of outdoor air as much as possible (ex: open windows/doors, prioritize outdoor seating).
  • Do not open windows/doors if doing so poses a safety or health risk (ex: fall risk, triggering asthma attacks).
  • Maintain indoor relative humidity at 40-60%.
  • Consider using portable HEPA filtration units.
  • If fans such as pedestal fans or hard mounted fans are used in the bar, take steps to minimize air from fans blowing from one person directly at another individual.

NOTE: Contact an occupational health and safety professional or ventilation specialist for advice on how to best utilize ventilation systems.

Signs and Messages

  • Post signs in highly visible locations (ex: restrooms, entrances) that promote everyday protective measures (ex: proper handwashing, wearing masks).
  • Place signs at the entrance that encourages customers to follow physical distancing requirements. Find creative and fun ways for staff and security to encourage customers to follow these guidelines.
  • Place signs asking customer and employees to wash hands before and after using the restroom.
  • Refer to CDC’s free print and digital resources.

Promoting Behaviors that Reduce Spread/Protect Employee Health

  • Stay home when appropriate.
  • Develop policies that encourage sick employees to stay home.
  • Employees should stay home if they have tested positive for or are showing COVID-19 symptoms.
  • Employees who have recently had a close contact with a person with COVID-19 should stay home and monitor health.
  • Stagger or rotate shifts to limit number of employees present at same time.
  • Minimize the number of customers present at one time (refer to previous post for PA-specific guidelines).
  • Designate a COVID-19 Point of Contact for each shift to be responsible for responding to COVID concerns.

Establish protocols for execution upon discovery that the business has been exposed to a person who is a probable or confirmed case of COVID-19 including:

  • Close off areas visited by the person who is a probable or confirmed case. Open outside doors and windows and wait a minimum of 24 hours, or as long as practical, before beginning cleaning and disinfection. Ensure safe and correct use and storage of EPA-approved List N disinfectants.
  • Prepare to isolate and safely transport those who are sick to their home or a healthcare facility.
  • Identify employees that were in close contact (within about 6 feet for about 10 minutes) with a person with a probable or confirmed case of COVID-19 from the period 48 hrs before symptom onset to the time at which the patient isolated. Advise them to stay home and self-monitor for symptoms and follow CDC guidance if symptoms develop.
  • Consistent with applicable law and privacy policies, have staff self-report to the designated Point of Contact if they have symptoms of COVID-19 or were exposed to someone with the virus within the last 14 days.
  • Close off areas used by a sick person. Wait at least 24 hours before cleaning and disinfecting.
  • Notify local health officials of any case of COVID-19 while maintaining confidentiality in accordance with the Americans with Disabilities Act (ADA).

Communication

  • Communicate to the customers what the bar is doing to mitigate the spread of COVID-19 (e.g., disinfection routine, health policies for staff, and health & safety measures in place).
  • Consider placing signage on tables to show that they have been disinfected after previous customers.
  • Communicate that the bar has the right to refuse service to anyone exhibiting      symptoms or not following guidelines (ex: physical distancing).
  • Platforms for communication could include websites, reservation processes, hand-outs, and outdoor signage.

 

Disclaimer: Penn State Extension educational programs, content, and recommendations (including text, graphics, and images) are for educational purposes only. The Pennsylvania State University does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

 

References

 

 

July 13, 2020  

COVID-19 Federal Guidelines for Reopening Tasting Rooms

by Molly Kelly, Enology Extension Educator

In blog post #1 (June 29th) Penn State Extension covered current COVID-19 state guidelines for the reopening of Pennsylvania tasting rooms. In the second and third post we will cover federal guidelines of general best practices related to the reopening of tasting rooms and COVID-19 drawn from guidance by the Centers for Disease Control (CDC), US Department of Labor, American Industrial Hygiene Association (AIHA), Occupational Safety and Health Administration (OSHA) and the Food and Drug Administration (FDA).

These agencies offer considerations for ways in which operators can protect employees, customers, and communities and slow the spread of COVID-19. These considerations are meant to supplement—not replace—any state, local, territorial, or tribal health and safety laws, rules, and regulations with which businesses must comply.

Cleaning and Disinfection

  • Continue to follow all required state and local regulations (see June 29th post)
  • Cleaners, Sanitizers and Disinfectants defined:
    • Cleaners remove dirt and debris by scrubbing, washing and rinsing. Be sure you are using the right type of cleaner for the soil you need to remove.
    • Sanitizers kill certain bacteria (listed on product’s label), in a specific period of time, and are regulated by the EPA.
    • Disinfectants kill certain bacteria, viruses, mildews, or fungi (listed on se products that meet EPA disinfection criteria (List N) and that are appropriate for the surface. Note contact time according to manufacturer directions.
  • Clean and disinfect high touch areas routinely in accordance with guidelines issued by the Centers for Disease Control and Prevention (CDC). Maintain pre-existing cleaning protocols established by the business for all other areas of the building.
  • Establish disinfection protocols and train staff on proper cleaning/disinfection.
  • Consider establishing a single staff position whose responsibility is to disinfect. This person should be continuously cleaning and visible to customers.
  • Consider using a checklist or audit system to track how often cleaning is conducted.
  • Wear gloves to empty garbage cans. Wash hands after removing gloves (see link for poster showing correct removal of gloves)

General cleaning and disinfection practices (CDC).

  • Remove visible dirt and debris.Routinely clean surfaces and objects with soap and water.
  • Disinfect with EPA-approved products.
  • If these products are not available, alternative disinfectants may be used (ex: 1/3 cup bleach added to 1 gallon of water, or 70% alcohol solution).
  • Frequently touched surfaces should be cleaned and disinfected at least daily.
  • Adjust your practices as federal, state and local guidance are updated.
  • If your business has been unoccupied for more than 7 days, it will only need your normal cleaning routine to reopen since the virus cannot survive on surfaces longer than this time.
  • Soft and porous materials that are not frequently touched should only be cleaned or laundered following label directions, using the warmest appropriate water setting.
  • Regularly disinfect liquor bottles, pour stations, taps, etc.

 Restrooms

  • Doors to multi-stall restrooms should be able to be opened and closed without touching handles, if at all possible.
  • Place a trash can by the door if the door cannot be opened without touching the handle.
  • For single restrooms, provide signage and materials (paper towels and trash cans) for individuals to use without touching the handles.
  • Provide paper towels and air dryers in restrooms.
    • The WHO and CDC currently state that hands can be dried using a paper towel or hand dryer.
    • The use of touch or push hand dryers is discouraged due to possible surface contamination. If hand dryers are used, consider touchless devices.

Handwashing

  • Require frequent handwashing for at least 20 seconds with soap and water.
  • Establish a “before and after service” hand washing or sanitizing for all staff including bar staff.
  • Provide hand sanitizer at each table and throughout the bar.
  • Although not necessary if hand-washing protocols are rigorously followed, consider providing gloves to servers.  If they are worn, they must be changed regularly and are not a substitution for hand-washing.

Tastings

  • Ensure that all employees are made aware of required procedures by communicating them either orally or in writing.
  • COVID-19 transmission risk is highest during tastings when customers remove masks.
  • Masks should only be removed when tasting/eating and worn at all other times.
  • Since spitting increases aerosols, do not allow spitting.
  • Install physical barriers, such as sneeze guards and partitions, particularly in areas where it is difficult for individuals to remain at least 6 feet apart. Barriers can be useful at cash registers, tasting bar, host stands, or food pickup areas where maintaining physical distance of at least 6 feet is difficult.
  • Provide physical guides, such as tape on floors or sidewalks and signage, to ensure that individuals remain at least 6 feet apart. Consider providing these guides where lines form and at the bar.
  • Staff should pour samples 6 feet away from customers, place samples on bar/table and move 6 feet away or consider delivering samples to customers seated at tables.
  • No shared snacks such as crackers. Consider single serve containers.
  • Everything should be disposable. Glasses can be washed according to established protocols.
  • Use disposable cups if possible.
  • Prior to entering the tasting room, have customers confirm that they will abide by established protocols (ex: 6 feet distancing, masks).
  • Provide hand sanitizer throughout the business, including entrances and exits.
  • Consider starting with a “reservation only policy” to start.
  • Require face coverings for staff. The type depends on local requirements and availability.

Modified Layouts and Procedures

  • Alter layouts to ensure all customer parties remain at least 6 feet apart (ex: mark tables and chairs that are not to be used, tape on floors).
  • Ask customers to wait in their cars while waiting to be seated.
  • Inform customers of business policies on signs and website.
  • Use phone app/text or signs to let patrons know that table is ready.

Checkout

  • Discourage use of cash to make purchases.
  • Encourage credit card use over cash, when possible.
  • Have staff package purchases for customers.
  • Avoid lines and maintain 6 feet distancing.
  • Staff should wash or sanitize hands between transactions.

The third blog post will cover additional considerations for reopening tasting rooms.

 

Disclaimer: Penn State Extension educational programs, content, and recommendations (including text, graphics, and images) are for educational purposes only. The Pennsylvania State University does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

 

References

 

 

June 29, 2020  

COVID-19 Guidelines for Reopening of Pennsylvania Tasting Rooms

by Molly Kelly, Enology Extension Educator

The virus that causes the Coronavirus 2019 Disease (COVID-19) is known as SARS-CoV-2. The virus can be easily transmitted, especially in settings where large groups gather. Penn State Extension offers the guidelines of health and safety best practices related to the reopening of tasting rooms to mitigate the spread of the virus. A series of general best practices was summarized through guidance from federal and state agencies including the Centers for Disease Control (CDC), US Department of Labor, American Industrial Hygiene Association (AIHA), Occupational Safety and Health Administration (OSHA), Food and Drug Administration (FDA) and the Pennsylvania Department of Health.

In this series of blog posts, we will first examine Pennsylvania-specific guidelines. Future posts will focus on federal guidelines. We will offer the most up-to-date information but please realize that guidelines may change quickly. In this post we offer some links that would be useful to check on a regular basis.

COVID-19 is mostly spread by respiratory droplets that are airborne when infected individuals cough, talk, or sneeze. The virus may also contaminate hands that touch surfaces with the virus present. It can then be spread to the nose or mouth, resulting in infection. A number of best practices are covered here  including handwashing, staying home when sick, and strict environmental cleaning and disinfection that can assist with lowering the risk of infection and viral spread. 

Pennsylvania is reopening counties in phases. As of June 20, 2020, all counties are in the green phase except one. Lebanon County remains in the yellow phase. Governor Tom Wolf announced that Lebanon County is slated to move to the green phase of reopening on July 3, putting all 67 counties in green. For  up to date information regarding phase status please see the official Pennsylvania government website at https://www.governor.pa.gov/process-to-reopen-pennsylvania/

Phases for Pennsylvania Counties

We also pulled those statements that we thought were most important to the industry. Please refer to the document above for detailed information.

  • Red: Businesses are permitted to provide take-out (curbside) and delivery sales only and may not allow the service or consumption of food or beverages on the premises. Also, masks are required.
  • Yellow: Businesses are permitted to provide take-out and delivery sales as well as dine-in service in outdoor seating areas as long as they strictly adhere to the state requirements for maximum occupancy limits (see below). Masks are required.
  • Green: Businesses are permitted to provide take-out and delivery sales as well as dine-in service in both indoor and outdoor seating areas as long as they strictly adhere to the state requirements including maximum occupancy limits. Masks are required.
  • Bar seating may be utilized provided that customers are seated and comply with the physical distancing guideline of at least 6 feet or physical barriers between customers.
  • A maximum of four customers that have a common relationship may sit together at the bar, while adhering to the physical distancing guidelines or barriers between other customers.
  • Penn State Extension suggestion:  Consider providing wine tasting at a table where the patrons are distanced from the pourer/server. That table can be better isolated and an establishment can serve more sets of patrons while avoiding a crowded bar.

 

State-specific and local guidance from the Pennsylvania Department of Health (updated June 25, 2020)

Please note that the COVID-19 situation is constantly changing and wineries are encouraged to follow updates.

The following items MUST be followed according to the order of the governor’s office:

  • Follow maximum occupancy limits for indoor/outdoor areas.
  • Method 1: Limit to 50% of state fire capacity or 24 people per 1,000 square feet if no fire code is available.
  • Method 2: Arrange business so that customers sitting at a table are not within six feet of any customers at another table (this distance would also apply to the tasting bar).
  • The Commonwealth will require commonwealth-created “COVID-19 Safety Procedures for Businesses” flyer to be clearly displayed at workplaces, along with publicly posted acknowledgement by the employer that the guidance is being followed. COVID-19-Reopening-Businesses-Flyer-8-5×11-1.pdf
  • There is also a requirement to name a “Pandemic Safety Officer” in charge of carrying out COVID-19 safety procedures.
  • Masks must be worn by workers and customers while entering, exiting or traveling throughout the business. Patrons may remove masks while seated or eating/drinking.
  • Those who cannot wear a mask due to a medical condition are not required to wear one and do not need to provide any documentation of such medical condition.
  • Protocols must be established to execute upon discovery that the business has been exposed to a person with probable or confirmed case of COVID-19.
  • Employees must be trained on importance and expectation of increased frequency of handwashing, the use of hand sanitizer with at least 60% alcohol, and avoidance of touching the face with hands. Make sure to document all training.
  • Provide masks for employees to wear at all times and make it mandatory to wear masks.
  • Where possible, stagger work stations to avoid employees standing right next to each other. If not possible, increase frequency of cleaning and sanitizing surfaces.
  • Verify that dishwashing machines are operating at the required wash, rinse and sanitize temperatures according to standard protocols.
  • Provide physical guides to ensure customers remain at least six feet apart. (ex: tape on floors or sidewalks and signage)
  • Assign employees to monitor and clean high-touch areas frequently. (ex: entrance doors, bathroom surfaces)
  • Clean and disinfect any shared items that customers come in contact with. (ex: tabletops, digital payment devices)
  • Live musicians performing at a restaurant, facility or venue must remain at least six feet from patrons and staff.

The following action items ARE ENCOURAGED according to the order of the governor’s office:

  • Establish a written, worksite-specific COVID-19 prevention plan, perform a comprehensive risk assessment of all work areas and designate a person to implement the plan.
  • In a risk assessment approach, the facility is divided into various functions and positions. The facility then assesses what could go wrong at each step of the process.
  • Controls are then put in place to prevent them from happening.
  • For additional information on COVID for Food Establishments and developing a prevention plan form please see the link for an article by Martin Bucknavage and Richard Kralj from the Penn State Extension Food Safety and Quality team entitled COVID Prevention Plan for Food Establishments.
  • Links to a COVID risk assessment form developed by the Occupational Safety and Health Administration (OSHA) are provided in the above document. Form examples are included (OSHA is the federal agency that investigates businesses where there is potential for infection).
  • Prior to each shift, ask that employees self-measure their temperature and assess symptoms. Below are a number of wellness questionnaires that may be utilized for this purpose.
  • Use single-use disposable menus (including tasting notes) and discard after each customer. Another option is to list wines available on a chalkboard and ask consumers to select samples from the list. Using reusable menus, other than digital menus sanitized after each use are prohibited in yellow phase.
  • Install physical barriers such as sneeze guards and partitions at point-of-sale terminals, cash registers, bars and other areas where maintaining six feet physical distance is difficult.
  • Provide hand sanitizer for customers and employees after handling credit cards or cash.
  • Schedule closure periods throughout the day to allow for cleaning and sanitizing.
  • Use separate doors to enter and exit the business when possible.

For the most up-to-date, reliable information, please continue to refer to the Commonwealth of Pennsylvania’s website for Responding to COVID-19 in Pennsylvania.    

Disclaimer: While Penn State Extension makes great efforts to produce the information within these protocols as timely and accurately as possible, we make no claims about the completeness of the contents and disclaim liability for errors or omissions in the contents. Remember that it is important to follow current federal, state and local regulations and guidance.

Note: We will host a panel discussion on the reopening of tasting rooms during COVID-19″ on July 22, 2020 as part of our webinar series. The announcement and registration link will follow soon.

References

June 2, 2020  

Wine consumer and product trends: What may change due to the COVID-19 pandemic, Part 2

By Kathy Kelley, Professor of Horticultural Marketing and Business Management, and Claudia Schmidt, Assistant Professor of Agricultural Economics

During our May 20, 2020 webinar, we focused on consumer willingness and readiness to visit restaurants and bars, travel for leisure, and what individual winery tasting rooms had done to prepare for consumer traffic.

When will they return to bars and restaurants and for what occasions?

For a few weeks, Nielsen CGA has published COVID-19 reports for “on premise” eating and drinking industries. The report published on April 29, 2020, “COVID-19 On Premise Impact Report – Issue IV,” included responses from 1,600 consumers who participated in a survey 24-27, 2020. Click on the following link to register for access to the report: https://www.nielsencga.com/covid-19/

One of the questions that consumers answered was “when they plan to return to bars and restaurants after shelter in place restrictions are lifted.” For the responses published in the report:

  • 28% “when venues demonstrate they can facilitate social distancing,”
  • 23% “once the number of COVID-19 cases doesn’t start to increase again,” 
  • 22% “soon as outlets reopen,” and
  • 19% would “return when the threat of COVID-19 is completely gone.”

When asked about the frequency with which they would visit bars and restaurants after the order is lifted, at least 60% “intend to return to bars/restaurants with the same or higher frequency,” with the following being the top reasons for returning:

  • To celebrate special occasions (75%),
  • have drinks with food (72%), and 
  • have romantic meals (70%).

As to what respondents would want on-premise food and drink businesses to do to prepare for their “initial visits,” as might be expected, half would want “fewer tables/patrons to accommodate social distancing.” Additional measures included:

  • Disposable/single-use menus, cutlery, drinkware,
  • contactless options for payment and ordering, and for takeout/delivery options to continue,
  • employees wear a mask and/or gloves, and customers must have their temperature checked, and  
  • certain types of alcohol available in cans and bottles. 

More recently, on May 27, 2020, Nielsen CGA released its sixth installment, which included data collected May 22-26, 2020 from 1,300 consumers residing in select metropolitan areas in states that have reopened on-premise restaurants and bars: Texas, Florida, Georgia, and Tennessee. This report is also available for free via this link: https://bit.ly/2XcaSQd

Highlights from the report include:

  • A majority of those who visited and ate/drank at bars and restaurants, 88%, “were satisfied with their overall experience” and 90% were satisfied with “health and safety precautions” implemented.  
  • 42% of consumers visited bars and restaurants to have drinks with food, followed by 32% who were on premise for relaxed/quiet drinks (32%).

For the period during which Nielsen CGA collected data, 27% of participants age 21 to 34 had “been out to drink in the last 2 weeks,” followed by 16% of those 35 to 54, and 6% of respondents age 55 and older.

What about returning to travel and leisure?

According to a survey conducted in April 2020, one-third of consumers would return to leisure activities (e.g., airplanes, hotels, casinos) “without hesitation, right now” (Last, 2020).

Three-quarters “need at least two of multiple conditions to be met” to do so with the two most cited being:

  • “A COVID-19 vaccine or approved pharmaceutical protocol to mitigate the effects of the virus, along with assurance from a reputed U.S. medical authority.

What have winery tasting rooms done in preparation for visits?

In mid-May, an article published by Wine Industry Advisor (Vigna, 2020), provided insight into what wineries in various states had done to prepare for reopening their tasting rooms.  While not a complete list of the actions they took, we summarized them below. 

In addition to learning about tasting-room specific ideas, consider what general retail industry experts are proposing.  For example, an article written for Chain Store Age (Wilson, 2020) assembled a list of strategies that could also be helpful for tasting rooms when developing a comfortable and safe environment:

  • Creating an outdoor waiting area to accommodate more visitors than allowed into the tasting room at one time/those who arrive early for their tasting session.
  • Using bright lights to transform “dark, moody spaces [that] have the perception of being unclean” into ones that are “open [and] more welcoming” and declutter the interior space.
  • Consider what consumers will touch with their hands and consider how to redesign these spaces to be touchless. 

Create content to build and enhance relationships with customers

Educate consumers about the industry

  • How buying local products, including wine, supports the community.  For several decades, we have known about the positive economic impact of buying local.  In 2010, for each $100 spent at a local business, $73 “stayed” in the local economy, while only $43 of each $100 spent at a non-locally owned business “stayed” (Robinson and LaMore, 2010).  
    • You may have local entrepreneurs in your area that produce sauces, meat and dairy products, and other food items that you could involve in short videos about the local food environment and how to use and pair their products with your wine. 
  • Show what is happening in the vineyard throughout the year. Take and post photos showing budbreak, planting vines, bloom, harvesting grapes, what vines look like in late fall and winter.
Your vineyard provides a beautiful setting throughout the year. Why not post photos during each season? 
  • If you are using sustainable production methods, how and why?  According to an article published in January 2020, 23% more U.S. consumers were interested in sustainable food choices compared to January 2019 (Gelski, 2020).  The increase is based on “more than two billion social [media] interactions” that were analyzed by Tastewise (https://www.tastewise.io), which tracks the “latest culinary trends in real-time.”  Of the various sustainability trends, the top three social interactions on sustainability were: “health benefits” (39% of interactions), followed by “local” (15%) and “recycle” (13%). Which of these do your sustainability efforts support and that you can share with wine consumers?
  • How to pronounce varietal names, for example, Grüner Veltliner.  During a fall focus group session that our team conducted, we learned directly from consumers that if they have difficulty pronouncing a varietal name – they are less likely to ask for the wine out of fear for embarrassing themselves.  Think about how easy it would be to create videos you could share on social media sites and YouTube with tips on how to pronounce them.

Supporting the community 

  • Remind consumers about how to stay healthy in general, and how to prepare for vising your tasting room.  Showing consumers how to navigate your “new” tasting room using video instead of requiring them to read a lot of text.  For example, a local hair salon in State College, PA, Adam Cole Salon (adamcolesalon.com), not only provided a written document (posted on their Facebook Page and sent to customer email addresses) on how to prepare for an appointment, how the check-in procedure has changed, how credit cards will be handled, etc., but they created a step-by-step video that makes these processes easy to follow and puts clientele at ease: https://bit.ly/2XevgQQ
  • Inform consumers about what you did/are doing during the pandemic.  Did you shift your operation to one that produced hand sanitizer, use your facility as a distribution site for food, supplies, and similar for your local community, did you donate items to front line workers?

Provide entertaining and engaging content

  • While we mentioned this in a previous blog post, continue to create videos that help consumers learn how to store and serve wine.  Involve local chefs, who are also struggling, and interview them about wine pairings and food items on their takeout menus that would work well with your offerings.  
  • Include gamification, the “integration of game mechanics,” into your Instagram, Facebook, YouTube videos, and other posts.  For example, post questions about the winemaking process on one or more of these outlets and keep track of consumers who have the most correct responses.  By posting their progress on a “leader board” that ranks the top five or 10 followers who provided the correct responses, this adds an engaging element and may motivate followers and fans to return for additional opportunities to improve their ranking.  We will discuss gamification and how winery tasting room owners can create a strategy for their business in an upcoming post.

Learn from your customers

Last, but not least – use online surveys, ask questions on social media, query wine club members.  Here are just a few of the ideas we have as to what you can ask to learn what appeals to your customers, how to connect with them, and what will make your tasting room comfortable and safe for their visits.  

References
Gelski, J. January 23, 2020. Interest in sustainable food choices increases 23%. Food Business News. https://www.foodbusinessnews.net/articles/15266-interest-in-sustainable-food-choices-increases-23

Last, J. April 15, 2020.  Path forward for sport, travel, leisure industries. The Marketing Insider. https://www.mediapost.com/publications/article/350086/a-path-forward-for-sports-travel-leisure-industr.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=118082&hashid=-o2Um0N1IC1D1k2MriEx8Ft3jaY

Robinson, N. and R.L. LaMore. 2010. Why buy local? An assessment of the economic advantages of shopping at locally owned businesses.  Michigan State University Center for Community and Economic Development. https://ced.msu.edu/upload/reports/why%20buy%20local.pdf

Vigna, P. May 18, 2020. The first wineries re-opened this weekend, but restrictions still present a challenge. Wine Industry Advisor. https://wineindustryadvisor.com/2020/05/18/first-wineries-re-opened-restrictions-challenge

Wilson, M. May 22, 2020. Retail design looks to a new era. Chain Store Age.  https://chainstoreage.com/retail-design-looks-new-era?utm_source=omeda&utm_medium=email&utm_campaign=NL_CSA_Store+Spaces&utm_keyword=&oly_enc_id=6355D4948723A8Z

June 1, 2020  

Wine E-commerce During Covid-19 and Beyond

By Claudia Schmidt, Assistant Professor of Marketing and Food Systems and Kathy Kelley, Professor of Horticultural Marketing and Business Management  

Across the United States, wine stores and winery tasting rooms had to close their doors to customers because of the COVID-19 pandemic. While in-store purchases continued in grocery and other designated “essential business” premises (restaurant take out, etc.), albeit at a much-decreased rate, online purchases of alcoholic beverages have increased dramatically, as Nielson (2020) numbers show.   

Alcohol Weekly Sales Growth vs. Year Ago 

Data Source: Nielson, 2020

According to Nielson (2020), to balance out the restaurant and bar sales losses, the wine market would need 27% in volume growth. Complicating this further is the fact that many restaurants do offer wine and alcohol purchases with takeout orders, however, at much lower prices, which will keep total consumer spending on alcoholic beverages low. Among consume packaged goods (CPG), alcohol is the fastest-growing category when it comes to online sales.

What is happening in Pennsylvania? 

In Pennsylvania, non-essential businesses had to close on March 23. The graph below, from the Opportunity Insights project, shows just how dramatically overall consumer spending has decreased with the day of public-school closures on March 16. All non-essential businesses had to close on March 23. Total spending decreased by an estimated 13.3 percent since the beginning of the year (as of May 10).  

Percentage Change in Consumer Spending in Pennsylvania  

Source: Opportunity Insights Economic Tracker: https://tracktherecovery.org/ (accessed May 24, 2020) 

The Pennsylvania Liquor Control Board (PLCB) started its e-commerce venture on April 1 and made $58,713 in sales and, since then, has seen tremendous growth in online sales. PLCB started with its curbside pickup on April 20, 2020, and between April 1 and May, the PLCB made $16 million in e-commerce sales (excluding sales tax or shipping costs) (PennLive, 2020). To put these numbers in perspective, according to the PLCB annual report, the PLCB had sales of $2.67 billion (including liquor and sales taxes) in 2018/19 (PLCB, 2019), which is on average $222.5 million per month. E-commerce sales were only 5 million in 2018/19 (PennLive, 2020). On May 22 the PLCB opened additional stores and 283 Fine Wine & Good Spirits are now open, with public access limited to the county status (PLCB, 2020).  

Kathy Kelley and I hosted a webinar on May 20, 2020, “Wine Consumer and Product Trends: What May Change Due to the COVID-19 Pandemic”.  During the webinar, we asked participants about their perception if consumers will continue to online shop when restrictions are lifted. The graph below shows how the answers differed between the group of producers (vineyard, winery and tasting room owners) and consumers (interested in the industry or intending to start in the industry) that answered the poll question. While half of both groups believe that consumers will continue online purchases, but will prefer their purchases directly from wine stores, 48% of the consumer group and 33% of the producer group believe that consumers will split their purchases. Interestingly, relatively more participants from the industry see consumers continue to make most of their wine purchases online.  

What do you believe will happen to e-commerce sales when consumers are once again allowed to enter winery tasting rooms to sample wine and make purchases? 

During this time, it is important for wineries and tasting rooms to keep the connection to their customers strong. According to Nielson data, consumers’ willingness to experiment has decreased with the overall uncertainty. In a survey of 10,000+ alcohol consumers, 69 percent of the respondents said that they prefer to buy an alcohol brand they already know. In our next blog post, we will talk about some of the actions wineries can take to stay in touch with their customers.

Sources:  

Nielson.2020. Rebalancing the ‘CoVID-19 Effect’ on Alcohol Sales. Accessed on May 24, 2020: https://www.nielsen.com/us/en/insights/article/2020/rebalancing-the-covid-19-effect-on-alcohol-sales/ 

PLCB.2019. 2018/19 Annual Report. Accessed on May 24, 2020: https://www.lcb.pa.gov/About-Us/News-and-Reports/Documents/AR_2018-19_FINAL.pdf 

PLCB.2020. Coronavirus (COVID-19) Information for Consumers. Accessed on May 24, 2020: https://www.lcb.pa.gov/Consumers/Pages/Coronavirus.aspx 

PennLive.2020. Liquor sales in Pa. break records during the coronavirus pandemic. Accessed on May 24, 2020:  https://www.pennlive.com/news/2020/05/liquor-sales-in-pa-break-records-during-the-coronavirus-pandemic.html 

April 2, 2020  

Tasting Rooms and COVID-19

By Dr. Kathy Kelley, Professor of Horticultural Marketing and Business Management

Recently, several industry sources have published articles with predictions as to how consumers may buy goods and services in a post-COVID-19 environment, and how to prepare now. Below is a list of some of these insights and ways you could incorporate them into your marketing strategy.  

  1.  Doing good for the greater good

Not too long ago, we published a blog post that described the importance of developing a cause marketing program (http://bit.ly/3a7pV1d ), since then it has become apparent that consumers are responding positively to businesses that “‘do the right thing’ during this crisis” (Gonsior and Chidley, 2020). And, after the crisis ends, consumers may be more likely to purchase from businesses that reached out and helped their community during the COVID-19 outbreak. 

Not every alcoholic beverage business has an inventory of gloves or masks that they can donate, nor the ability to shift operations to make hand sanitizer. Some have used their purchasing power to buy items in greatest need in their community (e.g., hand sanitizer, reusable bags) from their suppliers and either sold them or created COVID-19 survival care packages along with a bottle of wine.    

Other ways to “do good” could include posting the following on your website:

2. Connecting with consumers

Not surprisingly, consumers have increased their Twitter, Facebook, and Instagram, as well as messaging apps, usage since the outbreak (Hanson, 2020). For example, 17% of U.S. consumers, age 16-64, were “spending longer [amounts of time] on messaging services” apps, 32% on social media, and other online activities between March 16 to 20, 2020 (Watson, 2020). Thus, it only makes sense to go where potential customers are spending their time and create content that will distract them and occupy their time. 

The number of virtual tastings and happy hours that have occurred since the COVID-19 outbreak is quite impressive, with events hosted by individual wineries, regional winery associations, and even an “open that local bottle of wine” event held on March 28, 2020. For wineries and tasting rooms interested in hosting an event, Wine Business Monthly hosted a webinar, that is available on-demand, that describes best practices: https://youtu.be/y41nSNDL9Ko.

There are several different types of sessions that you could host live on Instagram, Facebook, Zoom, etc., and then post for on-demand viewing:

  • How your wines pair with trending flavors. 
  • Ask consumers to post questions about wine topics on your social media sites and then answer them during a live session. 
  • Provide updates about your business and demonstrate the steps customers should follow to place a wine order and how the pick-up and delivery process works at your winery.  

Cohost a session using Zoom or another videoconferencing program that allows multiple presenters (a list of some Zoom alternatives: https://bit.ly/2X4pt0q) with:

  • Local restaurants that are offering menu takeout and delivery items that pair with your wines.
  • Cooking schools that can demonstrate food safety handling tips, how consumers can make delicious meals in their own homes that can pair with your wines.
  • Bartenders and mixologists who can talk about the cocktail trend and create a couple of wine cocktails with your wines.  

According to one source, “most of us switch off [of a presentation] at around the 10-18 minute mark,” thus the optimal length for a presentation is 18 minutes. This amount of time “is short enough to hold people’s attention, including on the Internet and precise enough to be taken seriously” (Wong, 2018). Anything longer and you risk consumers tuning out or switching to another task.

Once the session has ended, not only post the full-length video but consider how you can divide up the video into shorter segments to appear to those of us who might find 18 minutes to be too long of a session. For example, divide up the session with the cooking school chef into three videos: one on food safety handling tips, another on easy to prepare meals, and the third on which of your wines pairs with the dish and optimum temperature for serving the wine.  

3. “Heightened sensitivity” to cleanliness and crowds 

Even after the COVID-19 outbreak is over, “we may have a different sense of our personal space…[and how] we feel about crowds and tight space” (Gonsior and Chidley, 2020). Distancing may lead tasting rooms, bars, and restaurant owners and operators to rethink the layout of these spaces. Evaluate your interior and exterior spaces and how you might rearrange them to accommodate those who may be uncomfortable seated at tightly packed tables and standing at tasting bars where consumers are two to three people deep.  

Rethinking your floorplan and increasing the space you allocate to seating is a good strategy even during times when we are not in a crisis. Based on data collected from wineries that responded to the 2015 Wine Business Monthly/Silicon Valley Bank Tasting Room Survey, “average wine purchases” were higher for those who were seated at a table or area other than at the bar when participating in a wine tasting. If this seated tasting was “private or formal” the average wine purchase was $392, while the average purchase was $107 for consumers who participated in a “casual or group” seated tasting. The average wine purchase for a customer standing at the tasting room bar was $75, while this dollar amount was $65 if the customer was seated at the tasting room bar. Also, according to the source, “Seated customers are more likely to join the wine club than if they are standing at the tasting bar” (Penn, 2015). 

4. Continued reliance on delivery and takeout

Right now, those essential businesses that can and can provide goods via delivery, pick-up, and contactless transfer of products can meet some consumers’ needs. And while these businesses may think that these processes will only appeal to consumers during this period, we may find that consumers will continue to want the convenience of takeout and delivery after businesses reopen (Gonsior and Chidley, 2020). During this time and the recovery period, consumer expectations may likely increase from a stance of just having an order filled to one that provides a pleasing experience. Right now, with your main interface being your website, be sure to ask customers if the website and ordering process is “straightforward and enjoyable” and that they “can still purchase and engage in a frictionless, easy way” (Mottl, 2020). 

Create a short survey that gages the ease of the ordering process, or send a follow-up email thanking them for their purchase along with a link to a survey that asks them to evaluate the ordering and pick-up/delivery processes and how it can be improved.  

References

Gonsior, L. and B. Chidley. March 27, 2020. Expert insight: Four long-term retail trends in post-COVID-10 world. Chain Store Age. https://chainstoreage.com/expert-insight-four-long-term-retail-trends-post-covid-19-world?utm_source=omeda&utm_medium=email&utm_campaign=NL_CSA_Store+Spaces&utm_keyword=&oly_enc_id=6355D4948723A8

Hanson, A. March 27, 2020. How social networks are surging and changing during the COVID-19 outbreak. ACH Communications. http://www.arikhanson.com/2020/03/27/how-social-networks-are-surging-and-changing-during-the-covid-19-outbreak/

Mottl, J. March 31, 2020. COVID-19: How retailers can overcome the challenges of a pandemic. Retail Customer Experience. https://www.retailcustomerexperience.com/articles/covid-19-how-retailers-can-overcome-the-challenges-of-a-pandemic/

Penn, C. 2015. 2015 WBM/SVB tasting room survey report. Wine Business Monthly.  22(7):50-58 https://www.winebusiness.com/wbm/?go=getArticleSignIn&dataId=152615

Watson, A. March 30, 2020. Consuming media at home due to the coronavirus worldwide 2020, by country. Statista.com https://www.statista.com/statistics/1106498/home-media-consumption-coronavirus-worldwide-by-country/

Wong, W. January 10, 2018. The ideal length for every online content. SEOPressor https://seopressor.com/blog/the-ideal-length-for-every-online-content/

February 27, 2020  

Cause Marketing Program Strategies

By Kathy Kelley, Professor of Horticultural Marketing and Business Management, Department of Plant Science

A 2014 blog post (http://bit.ly/2H7Ohvp) described some of the foundational pieces needed to build a successful cause marketing program: 

  • Make sure that the donation process is transparent;
  • consider a cause that has a natural connection with your business;
  • accept cash donations in addition to selling a product with proceeds going directly to the cause; and
  • involve customers and employees.

Today’s post elaborates on each of these components and additional factors you should consider when developing your program.  

The continued growth in cause marketing 

There are no shortages of businesses that collect donations on behalf of a cause, sell a product with proceeds benefitting a charity, or some hybrid.  If that is the case, and we are experiencing “cause fatigue” (http://bit.ly/38fUdhN), does it make sense for a winey to develop or revise a program?  The answer is: “Yes.”  

 Many articles about cause marketing emphasize the need for businesses and brands to include a cause marketing effort into their business plan.  What was estimated to be a $120 million industry in 1990 grew to over $2 billion in 2017, a 1,567% growth over this 17-year period (http://bit.ly/39rkxpw).  

According to the Cone 2017 CSR Study (http://bit.ly/31S4kHn), “86% of Americans expect companies to do more than make a profit.” Businesses are expected to focus on addressing social and environmental issues, with 81% of consumers indicating that a deciding factor in their brand during decision is that they “must be able to trust the brand to do what is right” (http://bit.ly/2SgoJTc).

Cause marketing interest by U.S. generation

Before we describe the consumer and interest and participation in cause marketing programs, here is a brief primer on U.S. generations, their ages in 2020, and the percentage of U.S. population in each.  We base many decisions on our psychographics (attitudes and beliefs) and our behaviors (what we do in a situation); however, there seem to be some differences based on age range and/or defined generation.  

While there are slight differences in the years that mark the beginning/ending for each generation, according to the PEW Research Center (https://pewrsr.ch/2HbKwoG), the age ranges that define them (adjusted for 2020) are as follows:  

  • Generation Z – under age 23 (various reports state different years as to when the generation ends) 
  • Millennials – age 24 to 39 
  • Generation X – ages 40 to 55 
  • Boomers – ages 56 to 74 
  • Silent/Greatest generations – age 75 and older 

Pertaining to the percentage of consumers in each generation.  Data published in the first quarter of 2017 (http://bit.ly/2SeZ1hN) provided the percentage of consumers in each generation: 

  • Generation Z –26%.  
  • Millennials –22% 
  • Generation X –20%
  • Boomers –23% 
  • Silent/Greatest generations – 9% 

According to the 2017 Cone Gen Z CSR Study: How to Speak Z, Gen Z consumers believe being a responsible company “is primarily about being a good employer (97%), while also making products that are good for individuals and their families (95%). This group also wants companies to help people and the environment (91%), while donating to causes in their communities (89%)” (http://bit.ly/2OHSY2Z).

Marketing decisions should not be made solely on consumer demographics, such as age or generation, rather attitudes (what they think) and behaviors (what they do) should also be used to better understand a consumer’s interest in a business’s cause marketing program.  It is, however, interesting to note that younger consumers may have a higher level of interest in learning about and participating in a cause marketing program. 

Responses published in the 5WPR 2020 Consumer Culture Report (http://bit.ly/2ScAPfU) indicate that a higher percentage of participants age 18 to 34 years:

  • feel that it is important to buy from companies that align with their values (83%) compared to consumers age 35 to 54 (73%), and 55 years of age and older (60%) and that the brand they are purchasing from has a charitable component (67% vs 52 and 30%, respectively),
  • like it “when CEOs of companies speak out on issues [they] care about” (76% vs 66 and 55%, respectively), and 
  • “will pay more for a product if [they] know some of the proceeds go to charity” (71% vs 61 and 40%, respectively).

Support a cause that is personal

When deciding on what cause(s) to support, select a cause that has some tie-in with the industry and/or that the cause is personal to the business.  

Ata Rangi, a winery in Martinborough, New Zealand, supports an environmental cause “that deeply resonated with [them] about the need for reforestation of native trees, support of a cause that aligned with [their] values” (Pete Monk, Ata Rangi business manager, personal communication).

After purchasing their Bush Block in 2001, owners discovered “a strand of ancient rata,” a native species whose existance, along with pōhutukawa, another native plant, was “threatened” (https://projectcrimson.org.nz/about-us/). First through Project Crimson Trust, and now as a supporter of Trees That Count (https://www.treesthatcount.co.nz/about-us), these efforts and sales from each bottle of Crimson Pinot Noir “a younger vines Pinot Noir” (https://atarangi.co.nz/wine/) have supported replanting native trees.

Ata Rangi, a winery in Martinborough, New Zealand, donates proceeds from Crimson, “a younger vines Pinot Noir” (https://atarangi.co.nz/wine/) to support replanting native trees.  

Additionally, Clive Paton, Ata Rangi founder, grows rata at his nursery, which has been the source for 75,000 trees that he, family, staff, friends, and volunteers have planted at the Bush Block (Pete Monk, Ata Rangi business manager, personal communication). Some trees are also availalbe for purchase.

A 2011 photo of the sign that hung in the Ata Rangi tasting room promoting the rata trees available for purchase.

Other businesses have supported causes that have personally impacted the owners and/or employees.  For example, Stew Leonard’s is an independent grocery store chain with outlets in Connecticut, New Jersey, and New York.  The business evolved from a small dairy store in 1969 to the “World’s Largest Dairy Store” and recognized in The Guinness Book of World Records as having “the greatest sales per unit area of any single food store in the United States” (https://www.stewleonards.com/how-it-all-began/).  

As a result of the accidental drowning of their 21-month old son in 1989, Kim and Stew Leonard created the Stew Leonard III Water Safety Foundation. The Foundation “has raised more than $2 million dollars to go toward water safety awareness and education, including lifeguard training and providing 10,000 free or low-cost swimming lessons to children every year” (https://stewietheduck.org/new-index).  Such a devasting event certainly propelled this family to make sure that others do not have the same tragic experience.  There is undoubtedly a strong tie between the business and an issue that can be a concern to many families.  

Other examples that have been recognized as having a connection are:

Most consumers will agree that they understand the connection between these brands and the causes they support without much explanation.  

What might be some causes to consider?

When deciding what cause categories to support, it might be helpful to consider what causes or issues consumers would “like companies to address.”

According to the 2017 Gen Z SCR Study: How to Speak Z (http://bit.ly/2SmAzuR): 

  • 34% of consumers who were surveyed selected “economic development,” which would include job creation, training, and infrastructure development, as the one issue they would like companies to address.   
    • When segmented by generation, only 23% of Millennials and 16% of the Gen Z participants selected this as “the one issue” they would like addressed.
  • “Poverty and hunger” was selected by the greatest percentage of Gen Z participants (28%), followed by “environment” (20%), and “human rights.”  

Another survey, conducted by Toluna and published in the March 13, 2017 issue of AdWeekly (http://bit.ly/2uulVZD), did not restrict participants to selected just one issue/cause.  Of the causes presented, the top three consumers felt a brand should support were: hunger, homelessness or medical relief (56%), education (54%), environmental sustainability and wildlife protection (45%). 

Encourage and remind consumers to share on social media

Additional data published in the 2017 Gen Z SCR Study: How to Speak Z (http://bit.ly/2SmAzuR) described the percentage of participants who responded that it was “very important/somewhat important” to perform an online action to support social or environmental issues.

Some statements and responses included in the report:

  • 77% of all survey participants felt it was “very important/somewhat important” to “share my positive opinion about a company that is doing good.”
    • When segmented by generation, 87% of Gen Z and 83% of Millennials felt it was “very important/somewhat important”
  • 77% of all survey participants felt it was “very important/somewhat important” to “vote to pick which charity should receive a donation.” 
    • When segmented by generation, 86% of Gen Z and 82% of Millennials felt it was “very important/somewhat important”
  • 65% of all survey participants felt it was “very important/somewhat important” to “‘like’ or follow a charity or company’s social or environmental program.” 
    • When segmented by generation, 79% of Gen Z and 77% of Millennials felt it was “very important/somewhat important”
  • 53% of all survey participants felt it was “very important/somewhat important” to “‘take an online action to trigger a donation.”
    • When segmented by generation, 68% of Gen Z and 71% of Millennials felt it was “very important/somewhat important”

When developing a campaign, also develop appropriate hashtags for Instagram and Twitter, and create photos and videos to share on all social media sites.  Also, consider creating an Instagram photo frame, similar to what a selfie would look like if posted on Instagram, with a cutout that “frames” those who visit your tasting room.  A great photo op – and an easily sharable way to promote your cause, the name and location of your business, and any relevant information and hashtags you use. 

An example of an Instagram “photo” or “selfie” frame created for an event. These frames can include the name of the business, information about the event, hashtags, etc.
“Two students in a selfie frame at Ag Day” by Christie Clancy on flickr.com Licensed under CC By 2.0

What should be avoided, or considered, when developing a cause-marketing campaign?  

Transparency 

1. Where the money went

As discussed in the 2014 blog post, providing evidence as to how much money was collected, when it was distributed, and alerting customers who purchase a cause-related product, make a donation, etc., about these and other outcomes is critical.  Anything less could be mistaken as “goodwashing”: misleading consumers about and/or embellishing cause marketing efforts and results (http://bit.ly/38nGnKg).

An example of a charity recognized as being highly transparent is Charity Water. Though they are not a winey collecting/accumulating money on behalf of a charity, they do have a protocol that a retailer could follow.  Charity Water’s goal is to bring “clean, safe drinking water to people in developing countries.  100% of all public donations directly fund water projects” (http://bit.ly/31LEnJf) with private donors covering their operation costs.  

To date, they have funded over 51,000 water projects, with over 11 million people gaining access to clean water in 28 countries.   In addition to these statistics, those who visit their website can learn more details about each completed project.  A map shows locations for projects in each of the 28 countries.   More information is available, including the exact GPS location of the project, the number of beneficiaries, a description of the project, any partners involved, and the date the information was published on their website.   

Image usage approved by charity: water. Screenshot taken directly from https://www.charitywater.org/our-projects/completed-projects/

For example, in March 2018, it was reported that 175 people living in Nathasar, India, now had access to “tankas,” which are tanks used to harvest household rainwater.  Before the completion of this project, the families had to travel distances to obtain water and/or pay high prices for water trucked into their community.  

Image usage approved by charity: water. Screenshot taken directly from https://www.charitywater.org/our-projects/completed-projects/

In addition to promoting the outcomes of a cause marketing effort, there are criteria for crafting the message so that they are clear and not misleading (http://bit.ly/2OIChEz).

2. Avoiding vague language  

How can you persuade consumers to purchase an item tied to a dollar amount that will be donated to a cause?  

Instead of deciding that a “percentage” of proceeds or profits will be donated to the cause, structure the program so that a percentage of the retail purchase price will be donated.  

This will give customers a much clearer idea as to how much will actually be donated.  If they have to make a calculation or take a wild guess as to what the final amount donated – they may underestimate or greatly overestimate how much was actually generated and donated.  This could then impact their decision to donate to any future campaigns you might host.

3. Flat donations 

According to Engage for Good (http://bit.ly/2OIChEz): “The company agrees to give a fixed amount to the charity. The amount does not depend on the number of sales. Yet the advertising tells consumers that each purchase results in a donation.”

While generating less than the goal is a considerable risk, so is the possibility of exceeding the goal but only donating the predetermined donation amount.  For consumers, they may not be persuaded to make a purchase or purchase less because, like the example above, they are unsure how much their purchase will generate – which might convince them to make a purchase elsewhere.

4. Capping donations

In this instance, the business implementing the cause marketing program donates to the cause for each action a consumer completes.  This could be a 50-cent donation, up to a specified amount (e.g., $2,000), for each new Facebook “like” or Instagram “follow,” or $1.00 from each purchase will is donated to the cause.  There is nothing inherently wrong with this approach, as consumers will understand how much is generated based on them doing “x” and that a total of up to “y” will be donated.  It is critical that the deadline for these actions is clear so as not to mislead those who “like” a Facebook Page or purchase a product after the cap is reached – and believe that they have helped reach the goal.    

Make it easy to donate  

1. Ask at check-out 

Whether you ask in the tasting room or add an option to your online shopping cart, consider asking customers for donations at the time they make a purchase.

A receipt form a national pharmacy chain store showing a consumer’s purchase and a $1.00 donation to the American Heart Association

From the 2019 YouGov Survey:

“Most (75%) Americans say that they typically donate some amount of money to charity every year. About one-third (32%) say they’ve donated during an in-store checkout at a grocery store or drug store”  (http://bit.ly/2OL8ew8).

From the Catalist’s 2018 Report: POS Giving: Progressing and Prospering:

  • “69% of consumers have given at point of sale in the last 12 months. Of those, 81% say they like or don’t mind being asked to give at the register.
  • Consumers prefer rounding up almost 2 to 1 over purchasing an icon for an additional dollar amount” (http://bit.ly/3bw13Sh).

2. Website donation buttons

Another option is it add a payment company donation button, like PayPal (paypal.com) or Stripe (stripe.com), to your website.  

According to research conducted by Northstar Research in October 2018, involving U.S. and Canadian consumers, and published on PayPal’s website (http://bit.ly/2HndOkq): 

  • “40% of donors would not have given to a nonprofit if PayPal wasn’t an option.
  • 75% of donors would give again if PayPal was a payment option.
  • 38% of donors prefer PayPal as their recurring payment method.
  • 79% of donors feel confident using PayPal to send payments on unfamiliar websites.”

The costs for a for-profit business to collect donations for a cause are 2.9% per transaction plus $0.30.  Thus, PayPal will charge the business:

  • $0.59 when they process a $10.00 donation, 
  • $1.75 for a $50.00 donation, 
  • $3.20 for a $100.00 donation, etc. 

Getting employees and customers involved

“Supporting charitable efforts can increase employee retention, build skills, and even improve physical and mental health” (www.thejargroup.com).  That quote alone might encourage companies to develop a cause marketing program, but here are some benefits employees involved in volunteer activities believed they:

  • 87% “develop professional skills,”
  • 86% “learn better time management,”
  • 92% “develop their people skills/teamwork,” and
  • 77% “strengthen relationship” (http://bit.ly/2SzVoSA).

What else might a company do to engage employees?

  • Companies such as Google match employee “donations to nonprofit organization” and money they “raise for charitable events that they actively participate in.” The company “matches between $50 and $12,000 in donations per employee each year” (http://bit.ly/31PEdAG).
  • Disney is one example of a company that provides grants to the “eligible nonprofit of [the employee’s] choice” based on the number of volunteer hours.  If the employee volunteers between 10 and 24 hours, a $100 grant is awarded to the cause, 75 or more volunteer hours will generate a $1,000 grant (http://bit.ly/31PEdAG).
  • Employees can be “brand ambassadors” and help inform the community and customers about the company sponsored cause by posting content on social media or having more of deciding role in the cause that is selected and/or how the business will support the cause.  (http://bit.ly/39y1TfF).

These strategies can also involve customers and asking them to select the cause, or causes, that will benefit from fund raising or donation campaigns.  Or matching customer donations (http://bit.ly/2OPR4xw).

Have a campaign deadline and offer incentives

Many times, consumers intend to donate to a cause, but if there is no time-sensitive call to action, they may get distracted by another cause or forget to donate all together.  A sense of urgency can encourage people to donate or make a purchase – sooner rather than later, or not at all.  

According to Indiegogo, which provides a platform for both for-profit and nonprofit campaigns, a campaign should be no more than 40 days, as longer durations could make it challenging to maintain interest and engagement (http://bit.ly/37iL8mZ).

Additionally, offering “perks” or incentives to donate could have a significant impact on giving.  Indiegogo reports that “campaigns offering perks rise 143% more money than those that do not” (http://bit.ly/2UOyLwq). 

A suggested strategy is to “offer at least three perks (especially in the $25 and $100 levels)” (https://wapo.st/2Hj1xgU) with perk examples including photos and updates of communities or families that have benefited from the campaign ($25 donation perk) to t-shirts, bags, and similar items ($100 to $150 level).  

How businesses and brands have benefited from cause marketing

One program that may resonate with many readers is the Yoplait “Save Lids to Save Lives” campaign that ran from 1998 to 2016 (https://bit.ly/38eGibW).  The program required consumers to purchase Yoplait yogurt and send lids to General Mills, which would then donate 10 cents for each lid (and later, code submitted online) received to the Susan G. Komen’s Race for the Cure.  During the 18 years that the program operated, over $50 million was donated to this cause based on the number of lids and codes submitted.   

With General Mills donating such an amount, and with the campaign running for nearly two decades, might the company have “profited” from the cause marketing (CM) effort?  To answer the question, researchers analyzed 1.5 million yogurt purchase incidences made across 7,257 households from January 2001 to December 2011.  While the researchers acknowledged that they were unable to obtain the costs for implementing the campaign, “profits during the CM campaign increase[d] by 2.70% (measured by dividing the CM coefficient of the Yoplait model by Yoplait’s mean customer profitability)” (Ballings et al., 2018; https://doi.org/10.1007/s11747-017-0571-4).  Additionally, the researchers also found that Yoplait’s CM initiative negatively influenced Dannon’s (a major competitor) “customer profitability, where profits during the CM campaign decrease[d] by 13.31%.” 

Another potential outcome of a successful brand’s cause marketing program is improving a company’s “public image.”  An extreme example is a change in perception about Wal-Mart that occurred in the early 2000s.   At the beginning of the decade, the company was dealing with “controversies over its labor practices environmental impact, class-action lawsuits, and other business behaviors and scandals” (http://bit.ly/2OKLcWg) to one that was heralded by The Washington Post “as a model for logistical efficiency and nimble disaster planning” (https://wapo.st/39rZ5R7).  After Hurrican Katrina impacted the Golf Coast, Wal-Mart responded by providing a “$15 million donation and an announcement that employees forced to flee their homes because of the hurricane would be hired at their new locations.”  The company was able to “deliver relief supplies to victims where the government could not” (http://bit.ly/2OKLcWg).  Hence, Wal-Mart received “the kind of advertising no marketer can buy” (http://bit.ly/38jBodt).  

But, unless the effort is truly integrated into a business’s practices and company culture, consumers will likely sense that it is inauthentic and quite possibly ignore it or criticize it on social media.  

Last, but not least, be there are legal considerations to working with a charity and promoting a cause

While the intent to support a cause is merely to do some good in the world, there are some legal considerations to be aware of according to the National Law Review:

“If a person or for-profit company joins forces with a charitable organization to benefit the charitable organization, usually via donations, the parties have entered into a commercial co-venture arrangement… All 50 states have [CCV] laws… some more complex than others” (http://bit.ly/2SpaTy0).  

Some items to consider regarding Commercial Co-Venture laws:

  • For-profit company/charity develop and sign a contract as to the goods/services offered, how donations will be generated and provided to the charity, duration of the campaign, if the charity’s logo and name will be used in the campaign, etc. 
  • Avoid vague language and “review advertising carefully for transparent disclosure of the per-unit donation amount.” (http://bit.ly/2SFP2kx)
  • Some states require that the program be registered and bonded.  
  • Check that the charity is “registered for general fundraising purposes” in states where the campaign will be held.
  • Charities that “actively promote the sale of a commercial sponsor’s good or services – even if such sales help generate donations” could lose their tax-exempt status and be subject to unrelated business income tax (UBIT). (http://bit.ly/2SFP2kx)
  • Avoid “self-dealing,” which “occurs when a private foundations’ assets are improperly used to benefit “disqualified persons,” who include substantial contributors and their officers and directors, as well as officers and directors of the foundation.” (http://bit.ly/2SFP2kx)
  • Follow the Better Business Bureau (BBB) Wise Giving Alliance standards. 

More about these and other legal issues are explained in sources such as: 

Reference

Ballings, M., McCullough, H., & Bharadwaj, N. (2018). Cause marketing and customer profitability. Journal of the Academy of Marketing Science, 46(2), 234-251. http://dx.doi.org/10.1007/s11747-017-0571-4

December 27, 2019  

Festival and Event Trends

By Kathy Kelley, Professor of Horticultural Marketing and Business Management, Department of Plant Science, and Claudia Schmidt, Assistant Professor of Agricultural Economics, Department of Agricultural Economics, Sociology, and Education

While we realize that there are varying opinions about wine festivals and whether they provide a desirable return on investment, it is important to be aware of consumer interest in such activities.  This blog post describes who attends festivals, why they attend these events, and what to offer that will result in a memorable experience.  

What is the true benefit of attending festivals and events?

Among the services they offer, White Hutchinson Leisure & Learning Group conducts research and publishes articles and blog posts about how, why, and where consumers spend their leisure time.  A number of their publications focus on how consumers of all ages desire experiences and that they are less likely to “[define] themselves based upon what they own…[but] upon the experience they have in their free time” (https://bit.ly/2YWHTPy).

An experience is “more than just entertainment…in fact, many times, the entertainment is not the largest part of their equation or the main motivation,” instead, when consumers “go out” with family and friends, “they often are primarily looking for a social experience, an opportunity to talk and be together.  The entertainment might only be the excuse to get together” (https://bit.ly/2YWHTPy). To offer customers a festival experience that leads to loyalty, provide both entertainment and an ecstatically pleasing environment (Mason and Nassivera, 2013).  Thus, the theme, visuals, and overall festival design needs to be well executed. 


Cellar Door Fest is held at the Adelaide Convention Center in South Australia each year. The three-day event, with advanced tickets available at a discount, provides a space for wineries and other alcohol beverage distributors, offers food for sale, entertainment for the general admission, and masterclasses and tasting and pairing events for an additional fee (https://cellardoorfestival.com).  

Increased interest in attending festivals and events

In 2015, survey participants were asked about the food, wine, and beer events (ranging from tastings to “special events and pop-ups” to “wine and beer festivals of all shapes and sizes”) they attended in the past 12 months.  Based on results, 

  • a majority (80%) of Millennial participants responded that they attended three or more of these events and 
  • 44% responded that they attended five or more within the past year.  

These events are “something they look forward to and get excited about,” (89% of Millennial participants selected the response) and that the events are among “their favorite things to do” (67%) (https://bit.ly/34yMrg5).

According to the source, Millennials are “yearning for live experiences. Instead of sitting down to a one-course meal at a restaurant with expensive drinks… [they are] seeking tasting experiences with a variety of times served.” Also, 61% would feel “they’ve missed out if they see photos of friends at a festival nearby that they didn’t attend,” and 64% “love to talk about the event with family and friends.”

Types of festivals that appeal

What types of festivals do consumers prefer?  When asked to indicate which festivals appealed, of the options presented, 

  • more Millennials (47%) ranked beer festivals as their most preferred event compared to 43% of Gen Xers and 32% of Baby Boomers and 
  • 21% of Baby Boomers and 17% of Gen Xers preferred wine festivals compared to 11% of Millennials. 

Hence, it is critical, for the longevity of established and new wine festivals, to identify whether this difference in participation is due to alcoholic beverage of choice, or the structure and entertainment provided during these events.  

It may be necessary to capitalize on these data and incorporate other alcoholic beverage vendors for a greater appeal to increase Millennial participation at traditionally wine-focused festivals. Gathering data from attendees will result in a more accurate assessment of what appeals and would encourage repeat festival participation.  This is because understanding the experience consumers have at a festival can be an important predictor of future behavior (Manthiou et al., 2012).  While sales data collected from vendors is one indicator of a festival’s success, other measures, such as after-festival brand recall and product purchases also need to be considered.  

For the foreseeable future, it appears that festivals, in general, will remain a relevant form of entertainment and appeal to experiencing seeking consumers.  According to their research, we are less likely to feel guilty spending money on experiences than on material goods, “feel more connected to other people, the community, and the world,” by attending live events, would rather be “known for [our] experiences than [our] possessions” (https://bit.ly/2rV9Gnt).    Other research indicates that more Millennials (73%) believe that “attending a live event is a form of self-expression” compared to other generations (48%) (https://bit.ly/2PwpYwb).  

Being strategic

Because there is a need to “make the most of their time,” consumers may desire or require shorter experiences to fit within their schedule.  And, because they want to use their time efficiently, there may be an interest in planning and scheduling activities to fit within the prescribed time (https://bit.ly/2YVTSNr).  This could be an advantage for tasting rooms that host festivals and events that require attendees to register and perhaps pay a deposit to attend.  It is a great advantage in terms of knowing how many staff members are needed for an activity and/or how much space would be required if planners know the approximate number of attendees.  

If their time is so precious, then it may make sense to offering experiences that “check more than one box.” According to White Hutchinson, several “new” offerings combine entertainment with another aspect.  For example, dinner cinemas (movies + meals), provides couples and groups with food, entertainment, and the ability to socialize.  Perhaps, in addition to more informal food offerings, attendees can participate in a full meal with wine pairings for each course. 

How much might attendees pay to attend?

According to one study, 74% of U.S. survey respondents “would prioritize spending spare change on experiences rather than products” (https://bit.ly/2sAKGSq).  All generations, not just Millennials, are focusing less on “accumulating stuff” and searching for experiences (https://bit.ly/2PXGF2i).  

When asked how much they would be willing to pay for a festival ticket,

  • 83% of Millennials would pay between $36 and $50 for a ticket to a wine festival, 
  • 85% would pay this amount for a food festival ticket, and 
  • 89% would pay the amount for a beer festival ticket.  

Only 3% of survey participants indicated that their motivation to attend was because admission was free.    

Offer exclusive opportunities

In addition to the entrance fee, 40% of Millennials surveyed were willing to pay an additional fee for a once-in-a-lifetime festival experience (e.g., VIP tent, ability to meet special guests/headliners) (https://bit.ly/2M4kqXI).  Such optional experiences may increase attendance and possibly increase the amount spent at the festival.  

Helping attendees share their experience

Consumers like to share their experiences as they happen with their friends and social media followers.  While they can easily share a photo online, consider creating a Facebook event frame, Instagram Geotag, and/or Snapchat filter (https://bit.ly/2EtIONW).  Or rent a smart photo booth so attendees can take and post photos, videos, and create GIFs (https://bit.ly/2YYyaIC) that could further their reach and promote you event.      

Eventbrite also suggests encouraging potential attendees to “retweet to win” free tickets and use branded hashtags on Twitter and/or Instagram and Snapchat snaps throughout and after the event to select and award attendees prizes (https://bit.ly/2YVvpaQ).  

Attendance alone should not be the only quantifiable factor used to determine a festival’s success; what is offered and experienced at the event should be analyzed as well.  Survey attendees during and after the event. If participants have to register to attend or their information is gathered during the event, develop a short questionnaire to ask them about their experience, what could be improved, and what would encourage them to attend future festivals and events.  

Citations

Michela Cesarina Mason & Federico Nassivera (2013) A Conceptualization of the Relationships Between Quality, Satisfaction, Behavioral Intention, and Awareness of a Festival, Journal of Hospitality Marketing & Management, 22:2, 162-182, DOI:10.1080/19368623.2011.643449

Manthiou, Aikaterini & Lee, Seonjeong (Ally) & Tang, Liang & Chiang, Lanlung. (2014). The Experience Economy Approach to Festival Marketing: Vivid Memory and Attendee Loyalty. Journal of Services Marketing. 28. 22-35. 10.1108/JSM-06-2012-0105.

May 24, 2019  

Summary of the Silicon Valley Bank’s Wine Division Direct-to Consumer Wine Sales videocast, Part 1

By Dr. Kathy Kelley, Professor of Horticultural Marketing and Business Management

Each year, The Silicon Valley Bank’s Wine Division releases a State of the Wine Industry Report. This is followed by a videocast overview in January, and then a videocast focusing on Direct-to-Consumer Wine Sales in May.  For more information about these products and events click on this link: www.svb.com/premium-wine-banking.  On Wednesday, I watched Part 1 of the Silicon Valley Bank “Insights for Successful Consumer Wine Sales” videocast.  If you missed the live videocast, you can watch the recording and/or sign up for Part 2, which will air on May 29, 2019, via this link: http://bit.ly/2EvkV9g.  Both videocasts will be the subject of Cryril Penn’s July 1 Wine Business Monthly article. Until then, I decided to write a blog post to give you an idea of some of the main themes discussed during videocast, as well as examples of how you can utilize the information at your own winery and tasting rooms.  

In-home Experiences/Tasting Opportunities: Personalization and Convenience 

The panel discussed the fact that subscription boxes are popular – in fact, the industry was estimated to be worth at least $10 billion in 2018 (http://bit.ly/30C1WmK). Subscription boxes are offered based on “who” the box is for (e.g., age range, gender, pet owner), interests (e.g., food, wine, fitness, environmentally friendly products), usage (e.g., beauty and clothing, education, cleaning), and are often “mass customized.”  As with one specific wine-based subscription box, new subscribers answer survey questions, after which each package is semi-personalized with products that are most likely to appeal.  

Perhaps you are wondering how you can take advantage of this trend.  Whether you have an existing club/loyalty program or if you have considered doing so, you can implement the “best practices” that make subscription clubs so popular.  A couple of these include:

1)    Incorporate user-generated content (UGC)

UGCs are customer reviews that include photos and/or video, in addition to text, that describes the user’s experience (think Amazon reviews), which companies then repost on their own social media accounts.  

Why is this type of review valuable?  As reported by Michale Ugino, co-founder & CMO of Sellbrite, the following are reasons why you should repost UGC on Instagram, Facebook, Twitter, Snapchat, YouTube, etc. (http://bit.ly/2YN7YiR):

  • a majority of adults in the U.S. use social media,
  • customers trust what other viewers say about the product – even if they are strangers – more than they trust “brand-created content,”
  • video and photos are more engaging compared to text-only posts,
  • with the need for brands to post frequently to remain relevant on social media – such content can help keep your tasting room front and center on followers’ feeds, and
  • aside from the time needed to locate and repost the content – it is free. 

This makes sense – if your customers are “on” Instagram, for example, why not use this outlet to showcase “real people” as they talk about how much they enjoy your wine or the great time they had in your tasting room (http://bit.ly/2YN7YiR).  

While you can use a tool like Google Alerts to receive email notifications when something is posted about your brand online, you will need to develop a hashtag, use it consistently in your posts, encourage others to use the hashtag in what they post, and monitor its use.  You can read about how several bands have used UGC successfully by accessing Ugino’s article: http://bit.ly/2YN7YiR.  

2)    Elements of surprise  

If your current club allows members to select the exact number bottles and varietals of wine they receive in a shipment, you might find that other customers look forward to “surprise” packages that they receive, and that part of the excitement is in the “reveal.” Excitement builds throughout the process – starting from the date when the customer expects the box to arrive, to when the box is delivered to the mailbox/doorstep, and peaks when the customer beaks open the package and inspects each item.  

Even if a particular item does not exactly appeal – most likely the recipient will give it a try and/or pass it on to a friend/family member, which further extends the brand’s reach and potential clientele base.   Perhaps you have seen the commercials for certain subscription boxes that air before the shipment – giving a “sneak peek” as to what the subscriber will receive – and then after all boxes have been shipped – when additional videos provide subscribers with information on how to use the product (even if a detailed card or booklet is included in the box with photos and usage instructions).  

Think about the impact you could have with creating short videos and posting them on social media sites that 1) provide a sneak peek as to what is in the subscription box and 2) a longer video (or series of videos) that provide descriptions of the wine, what to pair them with, how long they can be stored, how to store them, etc. 

While you may feel more comfortable recording and editing a video before it is posted – having a live event will give you the opportunity to ask and answer viewer question.  You may have already produced videos that describe these elements for some of your wines, but if the videos are released in tandem with the delivery – there might be a stronger connection, interest in the content, and viewership.   Just another strategy for developing content to stay relevant and on your followers’ screens.  

What are other ways that you can provide a level of convenience and personalization?  Think about how you can enhance the online shopping experience with delivery and in-store pickup.  Do you and your tasting room staff suggest tie-in products that complete the main purchase, or recommending purchase based on past behaviors?  There is at least one way that winery tasting rooms can offer convenience and potentially increase transaction size. 

Lingering 

The panelists not only had experience in the wine industry but in other “traditional” industries that are also seeing a maturing customer base and searching for ways to appeal to Gen Y (born between 1977 and 1994; http://bit.ly/2W1xWSB) and Gen Z (born between 1995 and 2012) consumers.  

One of the issues that arose during the discussion was how these generations behave differently from more mature consumers in tasting rooms, restaurants, and similar.  Past blog posts have described how important experiences are to these young consumers and that the value received needs to be justified by the price paid.   Price is certainly a consideration for these young consumers who likely have less discretionary income than older generations, and these young wine drinkers may be choosing tasting rooms based on the fee they will pay, but they are also selecting them based on the value of the overall experience.  

Videocast host Rob McMillan, EVP and Founder, Premium Wine Division, Silicon Valley Bank, provided an example as to how his step-daughter selected a tasting room based on the tasting room fee, outdoor lounging area, and activities offered (cornhole game area). This particular group was looking for a tasting experience during which they did not feel rushed and where they could “linger” or hang out and have a good time.  

I have shared the image below of a winery tasting room in Australia that had a driving range guests could use to practice their golf swing while consuming wine, beer, and cider. As I observed the group using the driving range (which was available for a fee), they were relaxed, socialized, and spent more on food and beverages than visitors who were participating in an informal tasting – and the demand on the staffs’ time was very minimal.  

Driving range at Sidewood Estate, South Australia

Lisa H. Kislak, Chief Markering Officer, Crimson Wine Group, discussed the value of “soft seating” and that it is a concept recognized in the restaurant industry – flexibility in space (like many modern hotel lobbies).  Such spaces will allow for lingering and create an atmosphere that encourages this type of behavior.  

The inclination may be to create a large space for visitors to chillax; however, first create a small area and evaluate the response (as with any changes that you make to your wine, selection, etc.) to determine if response is positive, how positive the response was, and then make the decision to increase the offering based on these data. The area you create could be as simple as a few picnic benches and tables or a bit more stylish like the example below.  

Outdoor recreation and seating area at Jacob’s Creek Winery, South Australia

Tastings by Reservation

While many of your tasting room visitors enjoy the freedom to walk in without having to plan too much in advance, others may enjoy the ability to make reservations for a more involved tasting – which may include a number of benefits: 1) time-stressed individuals know they will not have to wait long for staff to pour samples, 2) assurance that staff will be available and able to answer questions, and 3) access to reserved wines.  

I witnessed this several times at several Australian wineries where a dedicated tasting bar area was set aside for this purpose.  A “premium” fee was charged for the tasting and the staff member who oversaw the tasting was one of their seasoned employees who could answer any questions guests asked.  These factors elevated the tasting room experience and even though visitors paid more for a tasting – the value they received was well worth it.  Perhaps, as a result of the heightened level of satisfaction during their experience, they had an increased interest in the wines, willingness to follow the tasting room on social media, and likelihood of writing a positive online review.  

Collect Data from all Customers

I often write about data collection and analysis in my blog posts, as there is great power in knowing what appeals to tasting room visitors.  Though it is fairly easy to collect data, track purchases, and communicate with club/loyalty program members, if you are not learning about who is visiting your trashing room/purchasing online and who are not members of your club – you are missing out.  

So, how might you collect data from visitors who (for one reason or another) have not/chose not to join the loyalty program?  If you offer a tasting that requires a reservation, customers should provide the minimum: name, city/state (to learn from how far visitors travel, if there are “pockets” of households where visitors live and that could be the basis for targeting), email (to send a confirmation email and make it easier for the recipient to signup for an email newsletter), cell phone number (additional way to send the confirmation for the tasting and for him/her to signup to receive texts about upcoming events).  

However, there is also the opportunity to ask about preferences (to tailor the tasting to their interests, select the appropriate person to oversee the tasting, etc.), consumption frequency (to suggest club membership type/level that might fit their needs), how they learned about the tasting room (for future promotional efforts), etc.  The reservation form/system should also provide links to Facebook, Instagram, etc. and encourage recipients to follow the tasting room and key staff.  

Tammy Boatright, President of VingDirect, encouraged viewers to evaluate customers based on how frequently they purchase, when the most recent purchase was made, and how much consumers spend on each occasion and annually.  This will allow you to segment customers and identify who purchases your wines online vs in the tasting room, who purchases more frequently, and/or spends more per transaction.  From there you can develop promotions or events that would appeal to groups that exhibit similar interests.  Perhaps, if you find that a certain group of visitors only visit your tasting room or make an online purchase around the holidays, you could develop a targeted promotion to entice them to visit during periods in between.  

February 22, 2019  

An overview of recent wine products

By Dr. Kathy Kelley, Professor of Horticultural Marketing and Business Management 

With the number of websites, trade publications (e.g., Chilled, Spirited, The Tasting Panel), data from sources like Nielsen, and related, it can be daunting trying to keep up with new wine-product launches, evolving categories, and what might be on the horizon.  Some of the more prevent wine products discussed recently have been: spiked sparkling beverages, rosé and Sauvignon Blanc wines, sangria, and sparkling wines. In this blog post, I have provided a bit of the consumer and market research that I gleaned from the many publications and newsletters that I regularly read.  

Spiked sparkling beverages 

In 2012, the first hard seltzer (e.g., alcoholic seltzer water), SpikedSeltzer, was introduced based on Nick Shields’ observation of women at a bar who were ordering several vodka sodas (Schultz, 2018).   Other motivations for developing spiked sparkling water, according to Casey O’Neill, Boston Beer Company, was that they “were looking for a light, refreshing drink to reward ourselves with that wasn’t heavy on the alcohol” (O’Brien Coffey, 2017).  

These products also meet the needs of consumers who seek products low in calories and carbs and are gluten-free with (as you might expect) likely buyers more likely to be younger female drinkers (Wine Business Monthly, 2019a). 

Now, the category, “which didn’t exist two years ago” (Wine Business Monthly, 2019a) experienced sales of nearly $487.8 million, while volumes increased 181% for the 52-week period ending December 28, 2018 (Kendal, 2019), and accounted for about 10% of all flavored malt beverage sales in 2018 (Nielsen, 2018). 

Several wine-based, alternative beverage alcohol products with 5—6% ABV, have been introduced (Barth, 2018) have been spiked with rosé wine:

  • Truly Spiked & Sparkling’s Truly Rosé, with a 5% ABV, 1 g sugar, and 100 calories per serving, 
  • Nauti Seltzer’s Nauti Rosé 
  • Smirnoff raspberry rosé flavored spiked sparkling water beverage (90 calories and 1 carb)

Even SodaStream International Ltd has explored the trend.  In November 2017, a limited-edition Sparkling Gold “fine alcoholic concentrate,” was launched for the holidays.  The concentrate is not used with the SodaStream machine, but rather added to a glass along with chilled sparkling water (https://www.foodandwine.com/news/sodastream-sparkling-gold-riesling).  While only available for purchase through the manufacturer’s German website, the product provided users with a 10% ABV beverage “resembling the taste of fruity Riesling wine.”  

A product that is available in the US is Drinkmate which is produced by iDrink Products.  Using either a Drinkmate Machine or portable Drinkmate Spritzer, which use “Fizz Infuser technology,” consumers can carbonate any beverage.  

iDrink Product’s Drinkmate Spritzer
Permission to use the image granted by iDrink Products.  
Image source:
https://idrinkproducts.com/collections/on-the-go/products/drinkmate-spritzer-special-bundle

The Drinkmate sparkling wine spritzer can be crafted in just a few steps: “Add super-chilled white wine to halfway mark of Drinkmate bottle. Carbonate and add [a] slice of lime to rim glass.” https://idrinkproducts.com/blogs/drinkmate-recipes/drinkmate-sparkling-wine-spritzer

A recipe for a mimosa using white wine and a Drinkmate Machine
Permission to use the image granted by iDrink Products.  
Image source: https://idrinkproducts.com/blogs/drinkmate-recipes  

Empty CO2 cylinders can be returned to the company for credits that will be applied to future purchases.  

Rosé and Sauvignon Blanc

For the four-week period ending December 1, 2018, according to Nielsen-tracked data, off-premise wine sales increased 3.5% (Wine Business Monthly, 2019b).  While Chardonnay remains the most popular white wine varietal (based on off-premise value and volume), rosé table wine and Sauvignon Blanc experienced the greatest percentages of growth.  Off-premise sales of rosé grew 43.4% in dollar value and 43.8% in volume, and Sauvignon Blanc experienced an 8.4% increase in value and a 6.3% increase in volume (Wine Business Monthly, 2019b).

AdWeek recently published an article that described JNSQ, a new wine brand developed by The Wonderful Company (brands include POM Wonderful, Teleflora, Wonderful Pistachios https://www.wonderful.com). JNSQ is an abbreviation for the French phrase “je ne sais quoi” which is “used to describe someone so unique and exceptional that no words exist to sufficiently capture [the] essence” (http://www.wonderful.com/brands/jnsq.html)

JNSQ’s promotional message that describe the brand’s essence
Permission to use the image granted by JNSQ  
Image source: https://www.jnsq.com/pages/about-us

For now, a “Grenache-forward” Rosé Cru (image below) and Sauvignon Blanc, both made with California grapes and packaged in a bottle “inspired by vintage luxury perfume bottles…[with a] resealable glass stopper,” retail for $29.00 on the JNSQ website.  A 10% discount is applied to orders if the purchaser subscribes to either a 30, 60, or 90-day replenishment.  

Permission to use the image granted by JNSQ  
Image source: https://www.jnsq.com/products/rose-cu

According to the article, roséand Sauvignon Blanc were selected as Millennial women’s wine preferences have shifted to these wines. Lynda Resnick, The Wonderful Company co-owner, was quoted as saying these females and “older Gen Z’ers are bringing back an appreciation for quality, craftsmanship and functional beauty.”  

To further demonstrate Sauvignon Blanc’s popularity, in 2018, the Sauvignon Blanc Experience (https://sauvignonblancexperience.com), held in May 2018 in Kelseyville, CA, exceeded its goals for attendance.  The event which coincided with International Sauvignon Blanc Day featured speakers from wine brands and wine-growing regions around the globe and tastings for consumers and the trade (Wine Industry Advisor, 2018).  If you offer this varietal and want to host your own event – the holiday is celebrated the first Friday in May, which will be May 3 in 2019. 

Sangria and Sparkling

Referring again to Nielsen data, as reported in Wine Business Monthly (2019b), sangria sales value and volume increased by 10.4 and 5.5%, respectively, for the four-week period ending December 1, 2018, while sparkling wine grew 7.9% in value and 4.4% in volume.

Last summer, Market Watch Magazine published an article about sangria, sales growth at that time, projected on-premise growth (the CEO of Beso Del Sol Sangria predicts that the “category will grow upwards of 50% over the next few years”), and related trends (Marketwatchmag.com 2018).  Interviews with retailers, restaurants, and other brands touted the drink’s versatility as a year-round beverage (based on the wine and flavors used in the recipe), the cultural importance to Latino and Portuguese customers, and three brands that experienced “double-digit gains” in 2017.  

Of the brands, Lolea (launched in 2014, with a 34.2% growth in 2017) focuses on:

  • providing customers with a “better quality product,” 
  • packaging (e.g., a red, white, pink, black, gold color scheme, resealable bottle) and
  • engaging presence (e.g., social media, allowing and encouraging others to download artwork and images and share them with others).  
  • Lolea No 1 is “made with high quality Tempranillo and Cabernet Sauvignon red wines, fresh orange and lemon juice, and a touch of cinnamon.”
    Image and description source: https://sangrialolea.com/lolea-n1.phph

With five different offerings, with flavors ranging from “cherry red tone,” to a sparkling white “enhance with elderberry flowers and wild apples” and both a standard-sized and a 187ml bottle (below), the brand also offers a gift bag set, complementary products (e.g., ice bucket), and a party kit that includes eight 187ml bottles of sangria (four red and four white), and coordinating cups, straws, and bottle opener (https://sangrialolea.com/content.php#producto).  

Single serving sized bottles of Lolea No 2 is “made with high quality Macabeo and Chardonnay white wine, fresh orange and lemon juice, and a touch of vanilla”
Image and description source:https://sangrialolea.com/lolea-n1.php

In addition to drinking the sangria “straight up,” a number of cocktail recipes are offered that use the products as ingredients.  Examples include adding a splash of Cointreau and pieces of oranges and lemons to a pitcher of their red sangria (https://sangrialolea.com/lolea-n1.php).   A great strategy to encourage increased purchasing frequency and volume.   

Another company that experienced double-digit growth, Beso Del Sol (launched in 2015, with 39.6% growth in 2017) offers a:

  • white (tasting notes: Airén grapes, lemon, peach, and mango), 
  • rosé (Tempranillo grapes, orange, lemon, peach, mango, and a touch of cinnamon), and
  • red sangria (Tempranillo, lemon, orange, and a touch of cinnamon) (https://www.besodelsolsangria.com/our-story/). 

Other potential products include sparkling sangrias and a “winter sangria infused with winter fruits and spices” (Marketwatchmag.com 2018).  According to their website, their sangrias are gluten-free and vegan certified (https://www.besodelsolsangria.com/our-story/). 

Based on the Wine Market Council’s data – Millennial consumers have been the emphasis behind the growth of sparkling wine as are more likely to consume the beverage “sometime during the year, compared with older age groups” (Daniel, 2018/2019).  Restaurants interview for the article have had success with sparkling wine cocktails (e.g., as an ingredient for “high-end” sangria, and also mixed with elderflower liqueur, gin, and basil).  Rosésparkling and single-serving sized packaging, as you might have guessed, are increasing in popularity.  

Several sources mention consumer interest in sparkling wine from New Wine World regions, including New Zealand, South Africa, the US, and Australia – which is known for its sparkling Shiraz.  While this sparkling is often a component of an Australian Christmas meal (Wine Companion, 2018), it also pairs well with breakfast items, rare beef, roasted duck, Asian flavors (barbecue pork, teriyaki salmon, and peaking duck pancakes), traditional roasted lamb, and “fruit forward deserts.”  

The beverage can be a base for sangria, made with “orange and lemon rinds, cinnamon, brandy, and a dash of soda,” a punch, “just add grapes, berries, mint, and soda…(an option) dash of lime juice for extra bit,” or a desert, “ drop a scoop of vanilla ice cream into a glass” of sparkling shiraz for an “elegant” milkshake-like concoction (Wine Companion, 2018).   

If you do not have sparkling shiraz on hand, you can still make a cocktail using prosécco.  A recipe published in a recent issue of The Tasting Panel (Jackson, 2018), called the Benvenuto Frizzante, is made with prosécco, amaretto-tasting liqueur, and a variety of other and ingredients.  

References

Barth, J. (2018, December 13). How we will drink wine in 2019: Trends according to winemakers and pros. Retrieved from https://www.forbes.com/sites/jillbarth/2018/12/13/how-we-will-drink-wine-in-2019-trends-according-to-winemakers-and-pros/#24b429123a9c

Daniel, L. (2018/209). Shining sparklers. Cheers 29(6):18-21.

Jackson, M. (2018). Eternally Stylish.  The Tasting Panel 76(9):4-6. 

Kendall, J. (2019, January 28). Nielsen: Off-premise beer sales flatten in 2018 as hard seltzer sales near $500 million. Retrieved from https://www.brewbound.com/news/nielsen-off-premise-beer-sales-flatten-in-2018-as-hard-seltzer-sales-near-500-million

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